Mega corporates
accused of
intimidating bankers
Anisur Rahman Khan
The banking sector is reportedly being dominated by three mega companies, which are allegedly mishandling bank assets, leading to a liquidity crisis and other financial irregularities.
Reports suggest that those who oppose the unjust demands of these companies face severe consequences, including humiliation and threats.
Both private and state-owned banks, including Janata, Rupali, Sonali, and Agrani, are grappling with significant liquidity issues. As part of the terms for a $4.7 billion loan from the International Monetary Fund (IMF), the government must reduce defaulted loans in state-owned banks.
Several high-ranking officials in the banking sector, speaking anonymously, have voiced concerns that these companies, with political backing, are exploiting bank assets, causing the sector to deteriorate rapidly.
They lament the lack of support from the central bank in pursuing legal action against these powerful entities.
One senior banker, requesting anonymity, emphasised the necessity of strict enforcement of laws against loan defaulters to enable banks to recover significant amounts of defaulted loans.
Failure to apply these laws rigorously is exacerbating the crisis facing financial institutions, he observed.
According to Bangladesh Bank data released recently, defaulted loans surged to Tk145,633 crore at the end of December 2023 from Tk120,656 crore at the end of December 2022 and Tk103,273 crore in the same period in 2021.
For example, the state-owned Rupali Bank has filed 3,217 cases against defaulted borrowers with the Artha Rin Adalat to recover over Tk 7,103 crore.
According to the Rupali Bank report, the total amount of the bank’s default loans stood at Tk10,580 crore at the end of April 2023, and Tk7,103.08 crore of this massive default loan is stuck with 100 big borrowers.
According to multiple sources, the bank bears the burden of lending without proper scrutiny and investing in weak financial institutions to institute loans following its failure to recover the growing number of defaulted loans.
The Rupali Bank was lending to big businesses and individuals randomly but failed to recover loans on time, sources said.
As per data of the Rupali Bank show that Virgo Media (Tk 302.14 crore), Ibrahim Consortium (Tk 283.03 crore),Japan Bangladesh Security Printing and Papers Ltd (Tk 241.62 crore), Messers Prize Club general Trading Ltd (Tk 112.38 crore), Bangladesh Auto Rickshaw Chalak Samaboy Samity Ltd (Tk 42.93 crore), DSL Sweater Ltd (Tk 59.79 crore), Shafiq Steel (Tk 153.13 crore), Mabia Ship Breakers (Tk 151.93 crore), Water Heaven Corporation, Crystal Steel and Ship Breakers Ltd (Tk 147.38 crore), Jaso Allocating (Tk 66.64 crore), ND Grioup (Tk 49.99 crore), Setu International (Tk 39.48 crore), Fahad Garments (Tk 38.65 crore), Mastex Industries Ltd (Tk 34.77 crore), Bangladesh Auto Tempo Porter Cab Somoboy Samity (Tk 31.07 crore), Legacy Footwear (Tk 30.71 crore), Nasrin Zaman Knitwears Ltd (Tk 30 crore) Islam Khan Jute Mills (Tk 21.95 crore), Memory World (Tk 92.13 crore), Benitex Industries Ltd (Tk 379.81 crore), M/S Beautiful Jacket (Tk 140.2 crore) and Messers Dream Knitting (Bd) Ltd (Tk 105 crore) in defaulted loans to Rupali Bank.
Besides, Chattogram-based Nurjahan Group, AA Knit Spin Limited, HR Spinning Mill, Chattogram SA Group, M Rahman Steel, Jaz Spinning, Panna Textile, HZ Agro, Himalaya Paper and Board, Western Engineering, and Chowdhury Leather are also on the list of loan defaulters with Rupali Bank.
“The respective managers in all branches across the country have to submit updated reports regarding cases filed against the loan defaulters every day. The bank authority is very serious about realising the defaulted loans,” Md. Shahedur Rahman, General Manager of Rupali Bank, told The New Nation.
Md. Shahedur Rahman, who is also the Rupali Bank board secretary, said that they are continuously operating drives as per the directives of the Board of Directors of the Rupali Bank.
A top banker, preferring anonymity, said that some big companies rescheduled their huge loan payments just to pay a small amount of money.